BankWatch assigns LC-A+ to NISP bond

JAKARTA (JP): Thomson BankWatch, the New York-based rating agency, announced Saturday it had assigned a LC-A+ rating to Bank NISP's Rp 150 billion (US$62.5 million) bond.

At the same time, the bank's short-term local currency debt and intra-country issuer ratings were affirmed at LC-2 and LC-B/C respectively.

According to the rating agency's statement, Bank NISP, which is listed on the Jakarta Stock Exchange, enjoys solid financial characteristics and is guided by a conservative and capable management team.

"While the bank's firmly held regional franchise is one of its main strengths, it recognizes the commercial imperatives arising from increased competition and has taken steps to expand its network into other parts of the country and to broaden its customer base through efforts such as its joint venture with OCBC Bank of Singapore," the statement said.

Philippe Delhaise, the president of the rating firm, said that the bank, headquartered in Bandung, West Java, had long exhibited above average profitability ratios, which although falling slightly in 1996, still remained high.

With a sound asset quality, comfortable liquidity and a strong capital base, the bank was well positioned for future growth, he said.

Customer deposits continue to provide the bulk of the bank's funding although substantial efforts had been made to diversify and lengthen the funding mix in recent years.

Delhaise said the main shareholders remained strongly committed to the bank and the publicly held portion of the capital base had been further deepened recently, enhancing its longer-term capital-raising ability. (hen)